A Memorandum of Understanding (MoU) was signed on Tuesday, May 6, 2014 between representatives of four Chinese companies and Ministry of Industry (MoI) for the development of Special Economic Zones (SEZ) in Ethiopia.

The goup of Chinese companies who sigened the MoU are; China Civil Engineering Construction Corporation (CCECC), China Railway Engineering Corporation (CREC), China Communication Construction Company (CCCC) and China to Overseas Construction Groups Co (CGCOC).

The MoU is an extension of one of the 16 agreements signed during the stay of the Chinese Premier earlier. And the particular agreement for cooperation with regard to SEZs was signed between Sufian Ahmed, the State Minister for Finance & Economic Development, and the Chinese Minister of Commerce, Gao Huncheng.

The SEZs to be developed are expected to be situated at Kombolcha, Hawasssa, Dire Dawa and selected areas in Addis Ababa.

A feasibility study is being conducted by a Chinese company for the proposed sites. According to Seleshi Zegeye, Deputy Director of Public Relations at MoI, as soon as the study is concluded the Ministry will sign a construction deal with the Chinese companies.

Ethiopia has constructed a few industrial zones in the past. And now the Ministry has made a shift in policy to develop fully fledged special economic zones, Seleshi said.

According to Fortune, the government is drafting a new law that deals with SEZs.

Source: Fortune